What is a personal loan?
A personal loan is an unsecured loan which helps in meeting current financial needs. In this loan, the lender will not have to keep any security when they are about to avail the personal loan. The lender will give you comfortable mode as the borrower can utilize their money accordingly. It will help them in meeting their travel cost along with wedding expenses or emergency expenses. They are difficult to avail than credit cards. They can get a loan on strict qualification.
Benefits of personal loan
Used for any purpose- These types of loans are best for any purpose. Clients will come across with no limitations for using a personal loan. If you need funds on urgent basis then a personal loan is the best option for the clients which helps you in getting cash.
Can avail within 72 Hours- If the clients meet requirement regarding the eligibility part, then they can get a loan within 72 hours. Some banks are also best in providing the facility of online approval of personal loans for existing and past clients.
No security is required- Clients will not have to arrange any collateral security for the unsecured loan. It can be given to customers on their credit score.
Repayment period- Client is having the best option to choose tenure period according to their requirement. You can decide about the period after calculating the EMI for each year.
The rate of interest- These types of loans have a fixed rate of interest. Monthly installments are fixed for entire tenure.
Benefits of tax- If clients are using a personal loan for construction or renovation then they will get tax benefits of 2 lakh under section 24 B. In this case clients will have to provide necessary documents for the same.
Eligibility criteria for personal loan
Minimum, the age of the clients should be 21 years and maximum age should be 60 years.
Minimum income requirement from the banker side should be 15000 per month.
Total year of job should be 2 years
On the basis of above client will easily get a personal loan.
What are the different types of personal loans?
Different types of loans are
Unsecured loans- These loans will not require any kind of collateral security. Before granting it to customers. In this type of loan interest rates are higher than other types of loan.
Secured loans- In this type of loan, clients will have to keep collateral security for granting the loan. These types of loans are having lower interest as compared to other loans.
Fixed rate personal loans- The rate of interest in loans is fixed for the entire period.
Installment loans- These loans are secured or unsecured in nature. These types of loans have a fixed rate of interest that will prove good for clients.
Variable rate loans- The interest rate in these types of loans are variable in nature can pay according to the amount borrowed.
This person can avail loan for solving any kind of issues which requires more amounts.